(Yicai Global) June 28 -- Suning International, the global business arm of Chinese retailer Suning Group, plans to build a one-stop solution for overseas brands entering the Chinese market, according to its general manager.

Suning International is cooperating with short-video platform Douyin, TikTok’s sister app in China, and is taking advantage of Hainan province’s duty-free policies to help foreign businesses develop cross-border trading and tap into consumers’ lifestyle and consumption changes, Jia Meng told Yicai Global in a recent interview.

Despite the emergence of deglobalization after the outbreak of Covid-19 and recent geopolitical tensions “there are still frequent interactions between different countries from the business perspective,” Jia said. “China is such a big market with strong demand that factories all over the world value.

Nanjing-based Suning International began operations on Douyin last month, and invited overseas brands to join in with targeted funding support. The short-video platform and the formats it uses to present its content can be a way for them to reach consumers all over China, Jia said.

More than 100 brands have applied so far and those chosen will have Suning’s support in storage, logistics, guaranteed income and marketing. The selection is based on their product category, number of current stores, sales, and feedback from Chinese consumers, she added. Firms in the clean beauty, wellness and health care sectors will also enjoy traffic bonus.

If overseas brands intend to root themselves in the Chinese market, Suning International will take corresponding measures, make proper investment, and consider the consumer response. “We have a new product selection meeting every week, when we decide whether to put some product on the market,” Jia said. “We don’t choose many, and they need to be refined.”

China’s southern Hainan province is a free trade zone on track to become the world’s biggest duty-free market, per a report released last month by KPMG and Moodie Davitt. Though Suning International has not yet secured a duty-free license, it has already started preparations.

Laox, Japan’s largest duty-free merchandiser owned by Suning International, set up a joint venture with state-backed Hainan Tourism Duty-Free Goods and Hainan advertising agency Hylink Digital Solutions to leverage its knowledge in tax-exempt services, live commerce, and duty-free retail. Its first store is expected to open next month.

“For us, engaging in the duty-free business can help upgrade our supply chain and better serve the overseas brands entering China,” Jia said.

Brands often choose Shanghai as their first stop in the country, but now they are more willing to land in Hainan, where they can be shown off in airports, high-end tourist resorts, clubs, cruise clubs and even music festivals, instead of just via some retail channels, she added.

“Emerging overseas firms in particular prefer landing in Hainan’s offline stores or consumption venues, rather than immediately starting the cross-border e-commerce business,” Jia said. “They think this is very important to educate consumers with their first appearance.”

Editor: Futura Costaglione